A Small Business, With a $250,000 a Month Facebook Ad Habit

The typical U.S. small business is not spending much, if anything, on Facebook ads this year, according to the WSJ’s story today on the rising cost of advertising on the social-media outlet.

Facebook ads cost more, and are reaching fewer users, because there’s less ad space available and competition for that space has intensified. The story cites the experiences of three small businesses — an earphone-maker, an electric-bike maker and a Web platform for enrolling children in classes — with mixed results.

Facebook says the cost of its ads rose because the ads deliver more value. It also says it has many happy customers, including Amy Norman, co-founder of Little Passports Inc., who in June began spending about $250,000 monthly on Facebook ads – or a whopping $3 million a year. More on this after the jump…